Amortization Schedule Cost vs Value

Valuation of Capital Assets

Valuation of Capital Assets

I would like to know if I would use the cost (amount paid) or the value (blue book) for the amortization schedule for fixed assets.



section divider



You are going to draw up your amortization schedule based on the values used to record the capital asset in your G/L.


Assuming you are a small privately owned business, the easiest and least complicated way to record the value of your capital assets and amortize them is to stick with the original cost method.

Under the new GAAP standard for private enterprises (ASPE), you do have the option to value your assets using fair market value (FMV) but I wouldn't recommend this unless you or your accountant have a specific reason for wanting to do so.

Check out the GAAP update on plant, property and equipment here.

Click here to post comments

Return to Leases.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.






 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better



SHORTEN
Your Learning Curve!

Buy Now



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.






Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.






Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.






A Handy Reference

Buy Now